Ditto Raises $82M to Simplify Edge-to-Cloud Data Synchronization

Ditto Secures $82 Million in Series B Funding

Ditto, a firm focused on delivering robust connectivity solutions for devices at the network edge, has successfully completed a Series B funding round, raising $82 million. This investment results in a post-money valuation of $462 million, exceeding double the valuation achieved during its Series A funding in 2023.

Understanding Edge Computing

Within Ditto’s sector, the term “edge” denotes a distributed computing approach. This methodology positions data processing and storage nearer to the source of data creation – for example, IoT sensors, 5G routers, and smartphones – rather than relying on centralized data centers or cloud infrastructures.

The primary goal is to minimize latency and enhance bandwidth efficiency by processing data directly on the device or on dedicated “edge servers” situated close to the data’s origin.

The Importance of Edge Computing in the AI Era

In the current landscape of Artificial Intelligence and demanding machine learning applications, this capability is increasingly crucial. It is particularly vital when swift, real-time decision-making is essential, or when network connectivity is unreliable.

Speed is a critical factor in these scenarios.

Ditto’s Unique Approach

Ditto differentiates itself by circumventing the need for traditional physical edge servers. CEO and co-founder Adam Fish argues that these servers represent a significant cost and require substantial labor, expenses customers can avoid.

“Consider a regional fast-food chain; if they’ve invested in additional servers and Wi-Fi infrastructure across all locations, they often lack the on-site expertise to resolve technical issues,” Fish explained to TechCrunch via email.

“This necessitates expensive, specialized technicians, a situation one customer aptly described as a constant ‘whack-a-mole’ problem.”

Leveraging Existing Workforce Hardware

Instead of new infrastructure, Ditto utilizes the hardware already deployed by companies’ existing workforce, such as smartphones.

“Our solution substitutes hardware with software – a logical and efficient decision,” Fish stated.

This approach offers a streamlined and cost-effective alternative to conventional edge computing infrastructure.

Ditto Secures Funding for Edge Data Synchronization

Established in 2018, Ditto, headquartered in San Francisco, previously secured $45 million in Series A funding in 2022. Prior to that, the company completed a $9 million seed round in 2021. Ditto has rapidly gained traction, evidenced by a substantial $950 million contract awarded by the U.S. Air Force in 2022.

Over the last year, the company reports a doubling of its customer base to over 30 clients. Furthermore, annual recurring revenue (ARR) has experienced a significant 250% increase, although specific financial figures remain undisclosed.

The Core of Ditto’s Technology

Ditto’s platform centers around an “edge sync” capability. This is delivered as an embeddable software development kit (SDK). Device manufacturers can integrate this SDK directly into their applications.

This integration enables access to a device’s inherent connectivity options, such as Bluetooth, Wi-Fi, or local LAN. Consequently, companies can establish “ad-hoc mesh networks.” These networks allow applications to discover and interact with each other without reliance on a central cloud server.

Essentially, Ditto functions as a localized mobile database, facilitating read and write operations for applications.

Key Customer Sectors

Ditto’s unique approach has proven particularly appealing to major players in the airline industry. Notable customers include Delta, Japan Airlines, and Lufthansa.

According to Fish, airlines necessitate reliable crew communication, particularly during flight. However, inconsistent cabin connectivity often disrupts these communications.

This disruption can negatively impact team coordination and ultimately, the passenger experience.

Delta’s Implementation

Delta Airlines has developed a mobile application for its flight attendants. This app incorporates Ditto’s SDK and operates on standard company-provided iPhones.

With this implementation, flight attendants can now communicate seamlessly throughout the cabin. This fosters consistent collaboration during flights and enhances the overall customer experience, as Fish explains.

Benefits of the System

• Improved crew collaboration.
• Enhanced communication during critical flight phases.
• More reliable connectivity independent of cabin Wi-Fi.
• A better customer experience through improved service.

Bridging the Gap: Edge Computing and the Cloud

The considerable capabilities of contemporary cloud computing are undeniable, yet specific functionalities necessitate the processing power available only through remote servers. For example, self-driving vehicles are equipped with numerous sensors and cameras to gather real-time environmental data. They require local, immediate data processing for safe navigation, rather than complete dependence on cloud connectivity.

Simultaneously, companies developing autonomous vehicle technology must consolidate extensive datasets to enhance machine learning processes and refine their artificial intelligence models. This typically involves transmitting data to the cloud for analysis.

A similar principle is applicable across diverse industries, ranging from retail point-of-sale (POS) systems to IoT sensors utilized in manufacturing facilities.

Ditto effectively connects edge devices with the cloud, enabling developers to store and synchronize data directly between systems – a “peer-to-peer” (P2P) approach – while maintaining synchronization with centrally stored data. Consequently, Ditto provides separate pricing structures for clients who require cloud-to-edge synchronization without the complexities of mesh networking.

The overarching objective is to establish robust software infrastructure, ensuring that operational capabilities are not hindered by bottlenecks or bandwidth limitations.

According to Fish, the aim isn’t to eliminate the cloud, but to optimize its role. “The architecture should not be reliant on the cloud, however, that doesn’t negate the value of cloud and centralized systems,” Fish explained. “With Ditto, these systems can focus on their strengths – large-scale data integration and long-term storage – without becoming a constraint for real-time operational data.”

Bolstered by a recent $82 million investment, Fish stated the company intends to expand its team and enhance its primary product offering. This includes establishing strategic alliances with cloud database providers, building upon their existing collaboration with MongoDB. The recently launched MongoDB Connector facilitates seamless data synchronization between edge devices and MongoDB databases.

Furthermore, the increasing integration of AI into everyday life may accelerate the adoption of edge computing, as many AI applications demand real-time data processing and minimal latency. Data privacy is also a key consideration, as sensitive information can be processed locally, avoiding transmission to the cloud.

“Edge computing is experiencing significant momentum, particularly with the proliferation of AI,” Fish noted. “Processing models at the edge not only enhances system resilience but also improves data privacy and reduces operational costs. Our vision for Ditto is to become the leading platform for organizations addressing ‘edge’ challenges.”

Ditto’s Series B funding round was spearheaded by Top Tier Capital Partners and Acrew Capital, with contributions from Advance Venture Partners, Amity Ventures, Friends & Family Capital, Fundrise, Innovative Technology Fund (USIT), Internet Initiative Japan (IIJ), and True Ventures.